Tata Power to move SC on Rs 354cr refund order

The Appellate Tribunal for Electricity today directed Tata Power Company (TPC) to refund Rs 354 crore that Reliance Energy (REL) had paid it earlier as stand-by charges for electricity supply in Maharashtra, but TPC said it is considering challenging the verdict in the Supreme Court.

The Anil Ambani group firm said in a statement that the tribunal, in its final order, has allowed the company to claim a refund of Rs 354 crore paid by it to Tata Power as stand-by charges for power supply in Mumbai.

TPC, however, said in a statement: "The Appellate Tribunal for Electricity in its order has sought to settle the dispute between Tata Power Company and Reliance Energy. TPC is considering going in appeal in the SC."

The apex court, which is currently closed for winter vacations, is already hearing two appeals by Tata Power against the decisions of the tribunal, which in May this year ruled in favour of REL in separate cases regarding power supply in Mumbai.

The matter was decided after Judical Member Justice E Padmanabhan ruled in REL's favour when a bench comprising Technical Member A A Khan and Tribunal Chairman Justice Anil Dev Singh gave different rulings on the issue.

REL said the majority judgment turned down TPC's demand of sharing half the stand-by charges it pays to MSEB for ensuring uninterrupted power in Mumbai during an emergency.

TPC and REL have been engaged in a legal battle over sharing of stand-by charges since 1998. TPC, which pays Rs 396 crore to MSEB every year, has been asking REL to share 50% of the cost. However, the tribunal has now ruled TPC to pay 77% of the charges and REL the rest.